Creates provisions relating to certain customer classes approved by the Public Service Commission
Impact
The passage of SB1408 could lead to significant changes in how utility corporations operate within the state. For instance, it allows for the establishment of special residential customer classes, which could be defined by household income or utility burden. This development is fundamentally aimed at addressing affordability by ensuring that lower-income households receive equitable treatment in utility charges, thus fostering increased accessibility to essential services like water and electricity.
Summary
Senate Bill 1408 introduces new provisions related to customer classes that may be approved by the Public Service Commission in Missouri. Specifically, the bill aims to amend existing regulations concerning gas, electrical, water, and sewer corporations to ensure that services offered are safe, adequate, and just. By repealing section 393.130 and enacting a new version, SB1408 clarifies the responsibilities of utility corporations to prevent undue or unreasonable charges to customers, thereby promoting fairness in utility billing.
Contention
While proponents argue that this bill will enhance consumer protection and fairness within the utility market, opponents may raise concerns regarding the effectiveness of the Public Service Commission in regulating these changes. There may also be fears that the complexity introduced by income-based classifications could lead to confusion or bureaucratic inefficiencies. Additionally, the implications for how existing rates are structured and adjusted could foster debate among stakeholders, particularly among utility companies and advocacy groups focused on low-income support.